Clearstream enhances fund desk business with Fondcenter acquisition
22 January 2020 Zurich
Image: Shutterstock
Deutsche Boerse Group’s post-trade services provider Clearstream is set to bolster its B2B fund services with the acquisition of a 51 percent stake in UBS’ fund distribution platform, Fondcenter, for CHF 389 million (US$400.34 million).
As part of the deal, the two firms will enter into a “long-term commercial cooperation arrangements” for the provision of services to UBS, which will retain control of the remaining stake in the platform.
The transaction is expected to be completed in the second half of 2020, with Clearstream set to subsequent fully consolidate Fondcenter into its existing funds' services architecture.
According to Clearstream, the newly-combined distribution services, which is based in Zurich, will have over $230 billion in assets under administration.
Clearstream says it will become part of its “centre of excellence for fund distribution services” within Deutsche Boerse and will “significantly enhance” its existing fund desk business, which was formed in May 2019 following the finalisation of its acquisition of Swisscanto Funds Centre in 2018.
In a statement on the deal, Fondcenter states that it anticipates that it will grow its revenues by double-digit rates in the next few years with “additional meaningful revenue synergies” from cross-selling into the Clearstream client base.
The deal is the latest step in Deutsche Boerse Group’s Roadmap 2020 growth strategy and follows the acquisition of Ausmaq, a Sydney-based custodian of funds last year.
As part of the deal, the two firms will enter into a “long-term commercial cooperation arrangements” for the provision of services to UBS, which will retain control of the remaining stake in the platform.
The transaction is expected to be completed in the second half of 2020, with Clearstream set to subsequent fully consolidate Fondcenter into its existing funds' services architecture.
According to Clearstream, the newly-combined distribution services, which is based in Zurich, will have over $230 billion in assets under administration.
Clearstream says it will become part of its “centre of excellence for fund distribution services” within Deutsche Boerse and will “significantly enhance” its existing fund desk business, which was formed in May 2019 following the finalisation of its acquisition of Swisscanto Funds Centre in 2018.
In a statement on the deal, Fondcenter states that it anticipates that it will grow its revenues by double-digit rates in the next few years with “additional meaningful revenue synergies” from cross-selling into the Clearstream client base.
The deal is the latest step in Deutsche Boerse Group’s Roadmap 2020 growth strategy and follows the acquisition of Ausmaq, a Sydney-based custodian of funds last year.
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